Air Deccan signs term sheet to raise $ 100 mln

Bangalore, Sep 22 (UNI) Low cost carrier Air Deccan has signed a term sheet with a consortium of foreign bankers to raise 100 million dollars towards its working capital for the next 22 months.

Disclosing this to newspersons here after the Board of Directors meeting, Deccan Aviation Managing Director Capt G R Gopinath said the legal documents were being prepared and four or five banks were involved in the process. The money raised would be used for aircraft funding and development of routes, he added.

Giving the company's financial details for 15 months from April 2005 to June 2006, he said Air Deccan posted Rs 1,352 crore turnover in the period as against a turnover of Rs 320 crore during the last financial year.

The net loss was around Rs 340 crore. The overall financial performance for the period was impacted by various factors, including increase in fuel and input costs, introduction of 20 new aircraft and addition of 56 new routes, besides rising personnel costs, he explained.

He said the company was working on innovative financial structures to strengthen its finances and support the growth strategy. The next 12 months would see fierce competition with the entry of new players, he noted.

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